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O26451 City Council Meeting: August 25, 2020 Santa Monica, California ORDINANCE NUMBER 2645 (CCS) (City Council Series) AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO EXTEND EMERGENCY INTERIM ZONING ORDINANCE 2633 AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 9.39 AND SECTION 9.40.020 TO INCREASE THRESHOLDS FOR REVIEW OF ONE HUNDRED PERCENT AFFORDABLE HOUSING PROJECTS AND HOUSING PROJECTS SUBJECT TO THE HOUSING ACCOUNTABILITY ACT BY ADMINISTRATIVE APPROVAL WHEREAS, the State is experiencing a housing supply crisis, with housing demand far outstripping supply; and WHEREAS, in 2018, California ranked 49th out of the 50 states in housing units per capita; and WHEREAS, housing crisis has particularly exacerbated the need for affordable homes at prices below market rates; and WHEREAS, the housing crisis has resulted in increased poverty and homelessness, especially first-time homelessness, forced lower income residents into crowded and unsafe housing in urban areas, and forced families into lower cost new housing at the urban-rural interface with longer commute times and a higher exposure to fire hazard; and WHEREAS, California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over the next 7 years; and DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 2 WHEREAS, the Regional Housing Needs Assessment (“RHNA”) process is pending finalization for the 6th Cycle Housing Element, and is anticipated to result in an allocation of approximately 8,800 units to Santa Monica, of which 69% would be affordable housing; and WHEREAS, on July 6, 2010, the City Council adopted the Land Use and Circulation Element of the City’s General Plan (“LUCE”) which designates the proposed general distribution, location and extent of land uses within the City; and WHEREAS, the LUCE was adopted after an extensive planning process, and addresses neighborhood conservation and enhancement; integrated land use and transportation; proactive congestion management; complete neighborhoods with increased open space; community benefits; quality urban character and form; preservation of historic resources; and growth management; and WHEREAS, the LUCE differs from prior Land Use and Circulation elements, in part, by establishing a direct link between land use and transportation policies and programs and the establishment of new development policies and standards which ensure that quality development contributes to the character of the City; and WHEREAS, the LUCE establishes a base height for each land use as a baseline, and proposed development which seeks additional height above the base height is subject to discretionary review and must meet additional requirements consistent with the community’s broader social, environmental, and circulation goals – an approach defined in three tiers; and DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 3 WHEREAS, the LUCE provides certain bonuses, concessions and incentives for one hundred percent affordable housing projects, including a provision that allows for ministerial approval for projects of up to 50 units in size; and WHEREAS, on September 11, 2013, the City Council adopted the Bergamot Area Plan (“BAP”), which provides policies and standards to transition 142.5 acres of former industrial lands into an arts-focused, transit-oriented, mixed use, pedestrian-oriented neighborhood anchored by the Bergamot Exposition Light Rail Station; and WHEREAS, the BAP envisions creating the City’s most sustainable neighborhood—one that both conserves the authentic, industrial character that has fostered a creative community in the area and removes barriers to housing, local restaurants and services to take full advantage of the arrival of the Exposition Light Rail; and WHEREAS, the BAP encourages and creates opportunities to develop appropriate housing for all members of the community, with a target of at least 30% of housing affordable to people earning between 30% and 180% of the area median income; and WHEREAS, the BAP sets forth certain thresholds for processing development projects, including housing projects, in the plan area; and WHEREAS, on July 25, 2017, the City Council adopted the Downtown Community Plan (“DCP”) which sets forth the City’s vision of the Downtown as a high quality, mixed- use district offering opportunities for housing for people across the income spectrum, jobs, arts and culture, local serving retail, and community and visitor gathering places; and WHEREAS, in the DCP, Downtown housing projects are encouraged to support a strong and economically diverse residential neighborhood component; and DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 4 WHEREAS, the DCP supports that encouragement by differentiating between housing projects and commercial projects and provides for various incentives for housing projects, including streamlined processing by allowing for ministerial review of all one hundred percent affordable housing projects and any other housing project up to 75,000 square feet; and WHEREAS, the Zoning Ordinance implements the process thresholds for review of housing projects consistent with the LUCE, BAP, and DCP by requiring projects subject to ministerial review to be reviewed by the Administrative Approval process and projects that exceed ministerial review process thresholds to be reviewed by the Development Review Permit process; and WHEREAS, a RHNA allocation of 8,880 units with 69% affordability in the 6th Cycle Housing Element will require the City to permit approximately 1,000 housing units a year between 2021 and 2029, 700 of which each year are required to be affordable housing; and WHEREAS, 100% affordable housing projects, with challenges in available funding, are turning to financing sources such as tax credits, which establish a strict schedule for obtaining entitlements and building permits which are more easily met with a ministerial, rather than discretionary, review process; and WHEREAS, the Housing Accountability Act, California Government Code Section 65589.5 (the “HAA”), places strict limitations on the City’s discretion to deny, reduce the density of, or place conditions on a housing project that complies with objective general plan, zoning, and subdivision standards and criteria, including design review standards in effect at the time the application is determined complete; and DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 5 WHEREAS, requiring discretionary review for housing projects that comply with objective general plan, zoning, and subdivision standards and criteria, including design review standards in effect at the time the application is determined complete, adds time and expense to housing production without providing any meaningful benefit to the community; and WHEREAS, on December 10, 2019, the City Council conducted a study session on housing policy in part to discuss options for increasing housing production throughout the City with a particular emphasis on incentivizing one hundred percent affordable housing projects, and considered whether increasing the thresholds for ministerial review of certain housing projects would further stimulate housing production; and WHEREAS, on February 5, 2020, the Planning Commission adopted a Resolution of Intention, Resolution Number 20-002 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend the text of the LUCE, the BAP, and the DCP to increase the thresholds for ministerial review of one hundred percent affordable housing projects and housing projects subject to the HAA; and WHEREAS, on February 19, 2020, the Planning Commission conducted a duly noticed public hearing, and after considering oral and written testimony regarding the proposed amendments to the text of the LUCE, BAP, and DCP, adopted a Resolution of Recommendation, Resolution Number 20-005 (PCS) recommending to the City Council that the City Council adopt the proposed amendments; and WHEREAS, on March 10, 2020, the City Council conducted a duly noticed public hearing to consider the recommendation of the Planning Commission, and, after considering all oral and written testimony, adopted Resolutions Numbers 11237 (CCS), DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 6 11238 (CCS), and 11239 (CCS) to amend the LUCE, BAP, and DCP to increase the thresholds for ministerial review of one hundred percent affordable housing projects and housing projects subject to the HAA; and WHEREAS, on March 10, 2020, the City Council adopted emergency Interim Zoning Ordinance Number 2633 (CCS) (“Interim Zoning Ordinance 2633”), which immediately permitted one hundred percent affordable housing projects and housing projects subject to the HAA that do not exceed Tier 2 maximums to be processed by Administrative Approval rather than a Development Review Permit under certain conditions; and WHEREAS, pursuant to Santa Monica Municipal Code Section 9.46.090(C), Interim Zoning Ordinance 2592 was set to expire sixty days after its effective date, that is, on May 9, 2020; and WHEREAS, on March 13, 2020, the City Manager, in his role as the Director of Emergency Services, (“Director of Emergency Services”) proclaimed the existence of a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal Code to ensure the availability of mutual aid and an effective the City’s response to the novel coronavirus (“COVID-19”) and this local emergency was restated on March 14, 2020, through a revised declaration of local emergency to ensure compliance with all digital signature requirements (the “Executive Order”); and WHEREAS, on March 17, 2020, the Director of Emergency Services issued a Revised Fourth Supplement to the Executive Order (the “Revised Fourth Supplement”) which, in part, extended all Interim Zoning Ordinances in effect during the term of the Order; and DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 7 WHEREAS, the Revised Fourth Supplement was originally in effect through March 31, 2020, but as the result of a series of Council actions and additional supplements to the Executive Order, most recently by Council resolution issued July 28, 2020, the Revised Fourth Supplement has remained and will remain in effect through August 31, 2020; WHEREAS, on March 19, April 6, April 14, May 12, May 26, June 9, June 23, July 14, and July 28, 2020, the City Council ratified the Executive Order, as well as the supplements to the Executive Order in place at the time, including the Revised Fourth Supplement; and WHEREAS, there exists an immediate and continuing threat to the public health, safety and welfare due to the State’s ongoing and unprecedented housing crisis, which has resulted in the City’s anticipated RHNA allocation; and WHEREAS, the City desires to extend Interim Zoning Ordinance 2633 to maintain a streamlined process for approval of one hundred percent affordable housing projects and housing projects subject to the HAA that do not exceed Tier 2 maximums as the City’s 6th Cycle Housing Element update is completed; and WHEREAS, extending the streamlined process created by Interim Zoning Ordinance 2633 will support the City’s urgent need to produce housing and the City’s efforts to create a long-term housing strategy through the 6th Cycle Housing Element; and WHEREAS, to accord with the ordinance the City Council considered on August 25, 2020 adding Santa Monica Municipal Code Chapter 6.22: Residential Leasing Requirements, and provide more certainty for landlords and tenants, the City desires to DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 8 amend Interim Zoning Ordinance 2633 to require that all leases be made to tenants who will use and occupy the rental housing unit as the tenants’ “primary residence” as defined in the Interim Zoning Ordinance rather than “domicile” as that term is defined by Elections Code Section 349(b); and WHEREAS, adoption of this emergency Interim Zoning Ordinance is necessary to preserve public peace, health, safety and welfare as it will remove barriers to production of housing, particularly one hundred percent affordable housing projects. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Applicability. The interim regulations set forth in Section 2 shall apply to any project for which a planning entitlement application is received after the effective date of this Ordinance. SECTION 2. Interim Zoning Regulations. Santa Monica Municipal Code Chapter 9.39 and Section 9.40.020 shall be revised as follows: Chapter 9.39 Administrative Approval 9.39.010 Purpose Administrative Approval is intended to allow for the approval of projects which conform to the standards established for the Zoning District and do not require discretionary review or approval by the Director, Planning Commission, or City Council. Administrative Approval provides for an administrative review and assessment of the proposed development project in light of explicit standards contained in the Chapter which have been designed to ensure that the completed project will be in harmony with existing DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 9 or potential development in the surrounding area, consistent with the goals, objectives and policies of the General Plan. 9.39.020 Applicability A. Except as provided in subsection (B), an Administrative Approval shall be required prior to issuance of any Building Permit for the development for: 1. Any project of more than 1,000 square feet of floor area for all new construction and new additions to existing buildings located in Residential and Nonresidential Districts not otherwise subject to Zoning Conformance Review or discretionary review; 2. 100% Affordable Housing Projects; and 3. Any project that: a. Meets the definition of “housing development project” under the Housing Accountability Act, Government Code Section 65589.5, (“Housing Accountability Act”), and that, consistent with the Housing Accountability Act, complies with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete; b. Does not exceed Tier 2 maximums; and c. For projects with rental units, the applicant agrees, prior to issuance of a building permit, to record a deed restriction against the property ensuring each of the following: DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 10 i. All leases shall be made only to a tenant who is a natural person, or to tenants who are natural persons. ii. All leases shall be made only to a tenant or tenants who, regardless of the term of occupancy, will use and occupy the rental unit as the tenants’ primary residence. For purposes of this paragraph, “primary residence” means the usual place of return for housing of a tenant, as documented by at least two of the following: motor vehicle registration, driver’s license, California state identification card, voter registration, income tax return, or utility bill. A tenant can have only one primary residence. iii. All leases shall be in writing and provide for a minimum initial term of one (1) year; and iv. All units shall be leased as unfurnished units. B. No Administrative Approval shall be required for: 1. New construction and new additions to existing buildings located in the Multi-Unit Residential Districts, Ocean Park Neighborhood Districts; or 2. For any new single-unit dwellings or additions thereto in any zoning district. 9.39.030 Application Application for an Administrative Approval shall be filed in a manner consistent with the requirements contained in 9.37.020, Application Forms and Fees. DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 11 9.39.040 Procedures A. For projects eligible for an Administrative Approval under 9.39.020(A)(2) or (3), an applicant shall conduct a community meeting to receive community input on the proposal, which meeting shall be conducted prior to submitting an application and with noticing and reporting on the community meeting as required in guidelines adopted by the Director. B. Upon receipt in proper form of an Administrative Approval Application, a meeting with the Architectural Review Board shall be set to receive a recommendation on the design of the proposal, which shall be conducted prior to the Director’s determination. 9.39.050 Review and Decision A. The Director shall issue an Administrative Approval if the proposed development conforms precisely to applicable development standards, and does not require discretionary review or approval as outlined in this Chapter. B. The Director shall deny the Administrative Approval only if the development is not in compliance with the applicable development standards as outlined in this Chapter. C. The Director shall prepare a written decision which shall contain the findings of fact upon which such decision is based. D. Within 14 calendar days after the decision is made: 1. A copy of the decision shall be mailed to the applicant at the address shown on the application; and DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 12 2. For 100% affordable housing projects, and housing projects subject to Administrative Approval under Subsection 9.39.020(B)(3), a copy of the written decision and project plans shall be posted on the City’s website. 9.39.060 Term, Extension, and Revocation The term of permit, exercise of rights, extension, and revocation for Administrative Approvals shall be in accordance with the applicable provisions of Chapter 9.37, Common Procedures. Chapter 9.40 Development Review Permit 9.40.020 Applicability A. Except as provided in subsection (B), a Development Review Permit approved by the Planning Commission shall be required prior to issuance of any building permit for the development for: 1. Any project that exceeds Tier 1 maximum limits; 2. All new construction and new additions to existing buildings of more than 10,000 square feet of floor area located in Residential Districts or more than 7,500 square feet of floor area in Neighborhood Commercial and Oceanfront Districts; 3. All new construction and new additions to existing buildings of more than 15,000 square feet of floor area located in Nonresidential Districts not specified in subsection (A)(2); 4. Notwithstanding subsection (A)(3) above, all new construction of more than 30,000 square feet of floor area of a development project containing no DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 13 more than 15% of commercial floor area located in Nonresidential Districts not specified in subsection (A)(2); 5. Notwithstanding subsections (A)(2)—(4) above and until the adopting of a Pico Neighborhood Plan, all new construction and new additions to existing buildings of more than 7,500 square feet of floor area located in the Pico Neighborhood Area. B. The following types of projects are exempt from Development Permit Review requirements: 1. Single-unit dwellings; 2. 100% Affordable Housing Projects; and 3. Any project that: a. Meets the definition of “housing development project” under the Housing Accountability Act, Government Code Section 65589.5, (“Housing Accountability Act”) and that, consistent with the Housing Accountability Act, complies with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete; b. Does not exceed Tier 2 maximums; and c. For projects with rental units, the applicant agrees, prior to issuance of a building permit, to record a deed restriction against the property ensuring each of the following: DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 14 i. All leases shall be made only to a tenant who is a natural person, or to tenants who are natural persons. ii. All leases shall be made only to a tenant or tenants who, regardless of the term of occupancy, will use and occupy the rental unit as the tenants’ primary residence. For purposes of this paragraph, “primary residence” shall mean the usual place of return for housing of a tenant, as documented by at least two of the following: motor vehicle registration, driver’s license, California state identification card, voter registration, income tax return, or utility bill. A tenant can have only one primary residence. iii. All leases shall be in writing and provide for a minimum initial term of one (1) year; and iv. All units shall be leased as unfurnished units. SECTION 3. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 15 declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. This Ordinance is declared to be an emergency measure necessary for preserving the public peace, health, safety or welfare, adopted pursuant to the provisions of Section 615 of the Santa Monica City Charter. As set forth in the findings above and in the March 10, 2020 and August 25, 2020 staff reports, this Ordinance is necessary for preserving the public peace, health, safety, and welfare. As an emergency measure, this Ordinance will be effective immediately upon adoption. SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective immediately upon adoption. SECTION 7. This Ordinance shall be of no further force or as of December 31, 2021, unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090(C). APPROVED AS TO FORM: _________________________ GEORGE S. CARDONA Interim City Attorney DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 Approved and adopted this 25h day of August, 2020. _____________________________ Kevin McKeown, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2645 (CCS) had its introduction and adoption at the Santa Monica City Council meeting held on August 25, 2020, by the following vote: AYES: Councilmembers Davis, Himmelrich, Jara, McCowan, Winterer, Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None ATTEST: _____________________________________ _________________ Denise Anderson-Warren, City Clerk Date A summary of Ordinance No. 2645 (CCS) was duly published pursuant to California Government Code Section 40806. DocuSign Envelope ID: 49925251-C8F4-4098-806E-671E03BEED72 8/31/2020